Rabobank Plans Buyback of CMBS Notes

Rabobank announced that it plans to tender for the Classes B, C, D and E of the Skyline 2007 CMBS deal.

This transaction is a granular, 100% Dutch CMBS deal. The reserve prices are 68, 62, 40 and 26 of notional, respectively. The ratings are 'Aa1'/'AA' for the Class B, 'Aa2'/'A' for the Class C, 'Baa2'/'BBB' for the Class D and 'Ba2'/'BB' for the Class E.

Barclays Capital analysts said they anticipated more buybacks, especially from sponsors in single-borrower CMBS deals but the Skyline deal does not fit this profile.

"It does raise the question of whether we can expect other buybacks from highly-rated and well-capitalized banks in CMBS," analysts said. "In our view, this is actually not that likely given that most banks with active CMBS issuing programs in the past few years are not that well capitalized."

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